Someone is selling their New Jersey house for $2.3 million in bitcoin — and it's a growing trend

California, was the first home to be sold with bitcoin in 2014. It sold for 2,739 bitcoins, which were converted to $1.4 million cash by BitPay, a global bitcoin payment service provider headquartered in Atlanta. Most real estate sales involving ...

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Someone is selling their New Jersey house for $2.3 million in bitcoin — and it's a growing trend
Harrison Jacobs
Feb 1, 2018, 12:55 PM
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The
listing is far from the only one in the US to accept
bitcoin.
Zillow
A $2.3 million house in Middletown, New Jersey, is
accepting
bitcoin as a form of payment.
Bitcoin is becoming increasingly accepted in the real
estate market with hundreds of listings accepting the
cryptocurrency over the last six months.
There are a lot of risks to using bitcoin for payment
due to the cryptocurrency's volatility, but buyers and sellers
are finding creative ways to deal with it.
A house for sale in one of America's most desirable places to
live is accepting
bitcoin as payment, a growing trend in the real estate
market.
The Middletown, New Jersey, house was
nominally listed for $2.15 million on Zillow in late January.
The listing, however, stipulates that seller will accept bitcoin
as payment based upon a "non-negotiable" sale price of $2.3
million.
Far from Silicon Valley and other tech hubs, the listing in
Middletown,
often ranked one of the best places to live in the US, shows
just how far cryptocurrency and bitcoin have reached into the
national conversation.
The listing is far from the only one in the US to accept bitcoin.
Over the last six months, an increasing number of real estate
listings have begun accepting or requesting cryptocurrency for
paymentThere have even been some that only accept bitcoin
as payment.
Bitcoin Real Estate,
a website specializing in real estate listings that accept
cryptocurrency, told Mercury News in late January that it
has nearly 400 homes listed on its website.
Real estate website Trulia told Mashable last week that it
had around 80 listings that mentioned cryptocurrency in some
way, while Redfin said it had seen the number of listings
accepting cryptocurrency rise from 75 in December to 134 in
January.
The
Middletown, New Jersey, home is 5,600 square feet on more than
2.6 acres of land.
Zillow
Meanwhile, Ben Shaoul, the president of New York-based Magnum
Real Estate Group, told CNBC in October that he
plans to accept bitcoin as payment for condominiums in a
building he is currently redeveloping in Manhattan's Lower East
SideShould a buyer pay in bitcoin for an apartment, which range
in price from $700,000 to $1.5 million, Shaoul said he would hold
the bitcoins as an investment.
A
1.4 acre home in Lake Tahoe, California, was the first home
to be sold with bitcoin in 2014It sold for 2,739 bitcoins,
which were converted to $1.4 million cash by BitPay, a
global bitcoin payment service provider headquartered in
Atlanta.
Most real estate sales involving cryptocurrency have
operated similarlyThe parties agree on a fixed price in
dollars and then decide on a fair exchange rate at closingThe
bitcoins are then converted to cash by a third party, like
BitPay, which are then given to the sellerBuyers therefore
assume all the risk.
The problem with buying or selling real estate with bitcoin
currently — or any other cryptocurrency — are the massive
fluctuations in value on a day-to-day, and even hour-to-hour,
basisWhat
seems like a fair exchange rate at
the time, can seem like a steal or ripoff months later.
The first known real estate purchase using exclusively
bitcoin (i.enot bitcoin-to-cash conversion) occurred late last
December.
Bitcoin aficionado Ivan "Paychecks" Pacheco paid
17.741
bitcoin to Frank Mainade Jrfor a two-bedroom condo in
Miami's Upper East Side, reported The Real DealAt closing, that
was equivalent to $275,000 with an exchange rate of about
$15,500 per bitcoin.
As of publish time on Thursday, those 17.741 bitcoins
were worth
$159,577.
EXCLUSIVE FREE REPORT:The Bitcoin 101 Report by the BI Intelligence Research Team.Get the Report Now »
SEE ALSO: Paying taxes on bitcoin isn't nearly as hard as it sounds
DON'T MISS: Bitcoin just hit an all-time high — here's how you buy and sell it
NOW WATCH: Here’s your year-long guide to financial stability
More:
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Someone is selling their New Jersey house for $2.3 million in bitcoin — and it's a growing trend
Someone is selling their New Jersey house for $2.3 million in bitcoin — and it's a growing trend
A $2.3 million house in Middletown, New Jersey...
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